{"id":8290,"date":"2023-12-19T09:05:00","date_gmt":"2023-12-19T14:05:00","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=8290"},"modified":"2024-04-19T14:47:12","modified_gmt":"2024-04-19T18:47:12","slug":"the-likelihood-of-success-in-franchise-ownership","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/the-likelihood-of-success-in-franchise-ownership","title":{"rendered":"Seeing Through The Franchising Success Rate Mirage"},"content":{"rendered":"\n
\"franchising<\/figure>\n\n\n

Let’s talk about the franchising success rate<\/strong>.\u00a0And how it’s spun.<\/p>\n

The Likelihood Of Success In Franchise Ownership<\/h2>\n

If you buy a franchise, your chances of success<\/a> depends on a lot of factors. Remember…you read that here<\/em>.<\/p>\n

But before we continue, you need to keep the failure<\/a> rate in mind, too. Why?<\/p>\n

Because it happens.<\/p>\n

In particular, people who own franchises do<\/em> go out of business. They fail.\u00a0 Except you don’t hear about it a lot. And failing sucks.\u00a0Let’s continue.<\/p>\n

The Journalist In This Story Isn’t Wrong About The Franchising Success Rate<\/h2>\n

The reason I’m writing about this topic today has to do with “The stuff you read about on the internet<\/em>.”<\/p>\n

Translation<\/strong>; don’t believe everything you read. Let me show you what I mean.<\/p>\n

Several years ago, the editorial staff at The Sacramento Business Journal asked 3 people from the franchise industry what they thought were the advantages of\u00a0franchising<\/a>.<\/p>\n

Now the answers weren’t bad.<\/p>\n

Except for the one from a California franchise broker<\/em>.<\/p>\n

Here’s what she told the Sacramento Business Journal reporter:<\/p>\n

“The biggest advantage is the likelihood of success<\/strong><\/em>.”<\/p>\n

Quote-Unquote.<\/p>\n

I’m not kidding, you can read that completely incorrect<\/em> answer right here.<\/a><\/p>\n

Folks, the likelihood of success in a franchise<\/a> isn’t necessarily higher-when compared to starting a business from scratch.<\/p>\n

So don’t fall for it when you read articles or watch professionally produced videos from so-called franchise experts when they tell you “it’s safer to buy a franchise<\/em>.” They’re lying. It’s a mirage.<\/p>\n

Rinse And Repeat<\/h2>\n

Interestingly enough, another<\/em> franchise broker<\/a> said something eerily similar a while back over at Palo Alto Online:<\/p>\n

\u201cThe No. 1 reason businesses fail is lack of cash for working capital. After 10 years, only 16 percent of existing start-ups are still in business. With franchises, it\u2019s 90 percent<\/em><\/strong>,\u201d<\/p>\n

WRONG! Read why<\/a><\/p>\n

Don’t Drink The Franchising Success Rate Kool-Aid!<\/h2>\n

\"franchise<\/a><\/p>\n

Kool-Aid tastes pretty good. I loved it as a kid. The green kind.<\/p>\n

I know. There’s a lot of sugar in it. That’s bad.<\/p>\n

But what if something worse than sugar was added to your beverage?<\/p>\n

Okay…okay. The Kool-Aid I’m referring to is a metaphor. As in “Don’t drink the Kool-Aid<\/em>.”<\/p>\n

Another way of saying it; don’t believe everything you’re told.<\/p>\n

FYI: <\/strong>“Drinking the Kool-Aid” is an expression used to refer to a person who believes in a possibly doomed or dangerous idea because of perceived potential high rewards. The phrase often carries a negative connotation. It can also be used ironically or humorously to refer to accepting an idea or changing a preference due to popularity, peer pressure, or persuasion. In recent years it has evolved further to mean extreme dedication to a cause or purpose, so extreme that one would “drink the Kool-Aid” and die for the cause.<\/em><\/p>\n

The phrase originates from events in Jonestown, Guyana, on November 18, 1978, in which over 900 members of the Peoples Temple movement died. The movement’s leader, Jim Jones, called a mass meeting at the Jonestown pavilion after the murder of U.S. Congressman Leo Ryan and others in nearby Port Kaituma. Jones proposed “revolutionary suicide” by way of ingesting a powdered drink mix lethally laced with cyanide and other drugs which had been prepared by his aides.<\/em><\/p>\n

(Courtesy of\u00a0 Xu, H. Drinking the Kool-Aid. Encyclopedia. Available online: https:\/\/encyclopedia.pub\/entry\/35928<\/a> – accessed on 19 December 2023<\/em>).<\/p>\n

That wasn’t pretty.<\/p>\n

But the fact is, although buying the right franchise<\/a> for you can help you succeed as an owner of a business, there are no guarantees. Stuff happens. For example:<\/p>\n